HC Deb 27 March 1991 vol 188 cc429-30W
Mr. Andrew Mitchell

To ask the Secretary of State for Trade and Industry if he will report on how British companies have complied with the European Community code of conduct for companies with interests in South Africa during the 12-month period to 30 June 1990.

Mr. Lilley

By 15 March 1991, 107 companies had submitted reports to the DTI under the code of conduct. Copies of the reports and of the Department's analysis and summary have, as in previous years, been placed in the Library of each House. These documents may also be inspected at the Department's export market information centre, at the British embassy in Pretoria, at the British consulate-general in Johannesburg, and at the British consulates in Cape Town and Durban.

The analysis and summary is the fifth since the adoption of the revised code of conduct by EC Foreign Ministers in November 1985. Reports were received from all British companies, except one, whose interests are known or believed to warrant a full report under the code. The company which did not report was reminded of the existence of the code.

The reporting period under review has seen a marginal increase in the number of black employees of British subsidiaries being paid below the code's recommended minimum level. This increase is due to one company having acquired two new subsidiaries during the reporting period. This particular company intends to raise the wage levels in these two subsidiaries to at least the code's minimum level.

Companies' reports indicated that the level of their involvement with trade unions representing black workers increased, with the majority of companies reporting formal involvement with the trade unions. Many companies have taken steps to alleviate the particular hardships experienced by their migrant workers.

The number of companies providing training schemes has continued to increase, and as in previous years, all companies provided "on-the-job" training. In addition, companies continued to report impressive levels of involvement in projects benefiting not only their employees and their families but the wider communities from which their work force were drawn. Companies also continued to encourage the growth of black business.

The report reflects the increasing level of unemployment in South Africa, with a number of companies reporting a contraction of their black work force. This disturbing trend has continued since the period covered by the report: the South African Chamber of Business now estimates that over 40 per cent. of the economically active population are unemployed. This illustrates the pressing need to restore growth to the South African economy.

The Government are once more grateful to companies for their continued co-operation in providing reports and urge them to maintain this performance and to comply fully with the code.